Fedbank Financial Services Limited has successfully approved the issuance of Non-Convertible Debentures worth ₹500 crores at its board meeting held on March 3, 2026. The company's board formally considered and approved the private placement of up to 50,000 rated, listed, unsecured, non-cumulative, redeemable, subordinated Non-Convertible Debentures.

Board Meeting Outcome

The board meeting, which commenced at 12:00 noon and concluded at 12:22 p.m. on March 3, 2026, resulted in the formal approval of the NCD issuance under Regulations 30 and 51 of SEBI (LODR) Regulations, 2015. Company Secretary Parthasarathy Iyengar communicated the outcome to both NSE and BSE, ensuring regulatory compliance and transparency.

Debenture Terms and Structure

The approved Non-Convertible Debentures carry attractive terms for institutional investors. Each debenture has a face value of ₹1,00,000, with the instruments offering a fixed coupon rate of 9.00% per annum payable annually. The debentures are structured as Series-3 Sub Debt with a tenure of 7 years and 7 months from the deemed date of allotment.

Regulatory Timeline and Approvals

The NCD issuance follows a structured approval process initiated in August 2025. The Board of Directors initially granted approval on August 25, 2025, for issuing listed Non-Convertible Debentures up to ₹2,500 crores in one or more tranches. Shareholders subsequently approved the broader NCD program at their Annual General Meeting held on September 29, 2025.

The company has multiple existing NCD ISINs listed on BSE, including INE007N08023, INE007N07041, INE007N08015, INE007N07058, INE007N07066, and INE007N07033, along with Commercial Paper ISINs ranging from INE007N14EM0 to INE007N14EU3, demonstrating its established presence in the debt capital markets.

Fedbank Financial Services Limited has paid a fine of ₹11,800 to BSE Limited following the rejection of its waiver request on March 02, 2026. The penalty was imposed for the delayed submission of a record date notice related to debentures with ISIN INE007N07041.

Background of the Penalty

The fine originated from a compliance issue in September 2023 when the company failed to meet BSE's submission deadline for a record date notice. The company had fixed September 11, 2023 as the record date but submitted the intimation to BSE on August 31, 2023, one working day later than the required August 30, 2023 deadline.

Company's Explanation and Waiver Request

According to the company's disclosure, the delay was purely inadvertent and resulted from an unintentional miscalculation of the mandatory 7 working days' period. The company mistakenly calculated this period by excluding both the date of intimation and the record date, leading to the submission error.

The company emphasized that during the delayed period, no queries were received from any debenture holders regarding the intimation, suggesting minimal impact on stakeholders. Based on this rationale, Fedbank Financial Services applied for a waiver of the fine on January 4, 2024.

BSE's Decision and Fine Payment

Despite the company's explanation and waiver application, BSE Limited rejected the request through an email dated March 02, 2026. Following this rejection, the company promptly paid the penalty amount.

Regulatory Compliance Impact

The incident highlights the importance of precise compliance with stock exchange regulations regarding corporate announcements and record date intimations. The company has fulfilled its regulatory obligations by paying the imposed fine and making appropriate disclosures to both NSE and BSE as required under Regulation 30 of the SEBI Listing Regulations.